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Bates White expert values pharmaceutical assets before Wells Fargo-Merrimack settlement

October 2017

Bates White Partner Richard Manning was engaged as a testifying expert on behalf of the plaintiffs in the Wells Fargo Bank, N.A. et al. v. Merrimack Pharmaceuticals Inc. matter that settled before trial on October 10, 2017. The plaintiffs included the indenture trustee (Wells Fargo Bank, N.A.) and the majority note holders (Wolverine Flagship Fund Trading Limited, 1992 MSF International Ltd., and 1992 Tactical Credit Master Fund, L.P.) that held $35,760,000 aggregate principal amount of the convertible notes. The plaintiffs alleged that Merrimack’s sale of its only marketed oncology drug constituted a substantial asset sale, which, under the terms of the indenture governing the convertible notes, triggers the repurchase of convertible notes held by the plaintiffs.

Dr. Manning submitted two reports on behalf of the plaintiffs and performed a valuation of Merrimack’s pipeline of oncology drugs and opined that the sale of Merrimack’s sole commercial product constituted a fundamental change of the company. Under the terms of the settlement, Merrimack will pay $0.90 per $1.00 of convertible notes, plus accrued interest, and an amount toward plaintiffs’ legal fees.

Dr. Manning was supported by a Bates White team led by Saurav Karki and Fred Selck.

For more information regarding the settlement, see the press release filed with SEC.